Cloud Infrastructure Service Market Report 2025

This cloud infrastructure service market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The cloud infrastructure service market size has grown rapidly in recent years. It will grow from $155.68 billion in 2024 to $184.57 billion in 2025 at a compound annual growth rate (CAGR) of 18.6%. The growth in the historic period can be attributed to the rise of mobile and internet-connected devices, increasing data storage needs, growing importance of disaster recovery, rapid adoption of virtualization technologies, and demand for cloud-based solutions.

The cloud infrastructure service market size is expected to see rapid growth in the next few years. It will grow to $361.22 billion in 2029 at a compound annual growth rate (CAGR) of 18.3%. The growth in the forecast period can be attributed to increasing demand for AI and machine learning capabilities, the expansion of 5G networks, growth in big data analytics, the rise of Internet of Things (IoT) applications, and growing emphasis on cybersecurity measures. Major trends in the forecast period include growth in edge computing deployments, increasing focus on sustainability and green computing, advancements in AI-driven automation, the expansion of cloud-native technologies, and heightened robust cybersecurity solutions.

The increasing demand for digital transformation is anticipated to drive the growth of the cloud infrastructure service market. This demand arises from businesses seeking to boost operational efficiency, enhance customer experiences, and remain competitive in a rapidly evolving technological environment. Cloud infrastructure services facilitate digital transformation by offering scalable, flexible, and cost-effective resources that support innovation, data management, and smooth integration across digital platforms. For example, a report from the Central Digital and Data Office, a UK-based government entity, published in November 2023, highlighted a 9% increase in the Government Digital and Data profession over the past six months, raising the total number of professionals in this field to 28,337. This surge reflects the growing emphasis on digital transformation, which in turn drives the cloud infrastructure service market.

Key players in the cloud infrastructure services market are concentrating on developing next-generation software-defined storage (SDS) platforms to enhance integration with multi-cloud environments and boost performance for enterprise applications. An SDS platform manages storage resources through software, offering increased flexibility, scalability, and automation. For instance, DataDirect Networks, Inc., a US-based data storage company, introduced DDN Infinia in November 2023. This platform supports object, file, and block storage for a range of applications and features quick 10-minute installation, automated configuration, rolling upgrades, and elastic expansion. It also includes a multi-tenancy architecture and a software-based SLA manager for effective resource sharing and service quality. Infinia’s energy-efficient 1U all-QLC flash system optimizes storage density while lowering operational costs.

In January 2022, Atos SE, a France-based information technology services firm, acquired Cloudreach, Inc. for an undisclosed sum. This acquisition aims to strengthen Atos' cloud capabilities and accelerate its digital transformation services by integrating Cloudreach's expertise in cloud migration and management. Cloudreach Inc., a UK-based multi-cloud services company, will enhance Atos' portfolio with its specialized knowledge.

Major companies operating in the cloud infrastructure service market are AT&T Inc., Dell Technologies Inc., Tencent Holdings Limited, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Fujitsu Limited, Hewlett Packard Enterprise Development LP, Salesforce Inc., NEC Corporation, Lumen Technologies, DXC Technology Company, Alibaba Cloud US LLC, Rackspace Technology Inc., IONOS Inc., Joyent Inc., Skytap Inc., Zadara Inc., Linode LLC, Cumulus Networks Inc.

North America was the largest region in the cloud infrastructure service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cloud infrastructure service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cloud infrastructure service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Cloud infrastructure services provide virtualized computing resources over the internet, including servers, storage, networking, and data centers. These services enable businesses to utilize scalable and flexible IT infrastructure without the need for physical hardware, supporting various applications such as data storage, web hosting, and enterprise solutions.

The main types of cloud infrastructure services include compute as a service, storage as a service, networking as a service, and others. Compute as a service offers scalable virtualized computing resources online, enabling organizations to run applications and perform complex tasks without managing physical servers. Cloud infrastructure can be deployed through public, private, or hybrid cloud models, and is utilized by organizations of various sizes, including small and medium-sized enterprises (SMEs) and large enterprises. Key end-user verticals for these services include banking, financial services, and insurance (BFSI), information technology (IT) and telecommunications, retail, healthcare and life sciences, and government.

The cloud infrastructure services market research report is one of a series of new reports that provides cloud infrastructure services market statistics, including cloud infrastructure services industry global market size, regional shares, competitors with a cloud infrastructure services market share, detailed cloud infrastructure services market segments, market trends, and opportunities, and any further data you may need to thrive in the cloud infrastructure services industry. This cloud infrastructure services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The cloud infrastructure service market consists of revenues earned by entities by providing services such as edge computing services and managed cloud services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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